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Seoul stocks likely to face volatile sessions next week: analysts

All News 14:12 July 04, 2020

By Chung Joo-won

SEOUL, July 4 (Yonhap) -- South Korean stocks are expected to face choppy trading next week amid signs of a global economic recovery and the rising number of new coronavirus infections, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,152.41 points Friday, up 0.83 percent from a week earlier.

"The gap is narrowing between the stock index and the real economy," said Daeshin Securities global strategist Moon Nam-joong. "The improved U.S. jobs data seems to have given the impression that the worst part of the pandemic is over," he said.

The U.S. jobless rate in June fell to 11.1 percent from 13.3 percent the previous month.

South Korea's June exports dropped for the fourth consecutive month, but the rate of decline slowed to 10.9 percent from a 23.7 percent on-year plunge in May and 24.3 percent decrease in April.

Electronic signboards at the trading room of Hana Bank in Seoul show the benchmark Korea Composite Stock Price Index (KOSPI) have closed at 2,152.41 on July 3, 2020, up 17.04 points, or 0.80 percent, from the previous session's close. (Yonhap)

Global economic reopenings led to improved economic data in June but also raised the number of new COVID-19 infections, analysts said.

"Hopes of vaccine developments and government-led stimulus are already projected in the index, making it more difficult to see a rally in the coming week," NH Investment & Securities analyst Kim Young-hwan said.

Another positive factor would be the National Assembly's approval of a third and largest extra budget bill ever, he said.

jwc@yna.co.kr
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